Get ready to exercise caution when using extra virgin olive oil on your salads, pizzas, and pastas, as its cost has skyrocketed from INR 850 to INR 1,100 per liter, and there’s a chance it could reach INR 1,500 soon. Projections indicate that pomace olive oil, presently priced between INR 400 and INR 500, might surge to INR 800 per liter.
Europe has witnessed two back-to-back years of drought, resulting in unprecedented price hikes. Importers have noted that prices have surged across all categories, with increases of at least 50 to 60 percent.
“I spoke to my Italian suppliers recently, and they said that there is unlikely to be any respite till the end of the year,” said an importer.
Indian consumers, who rely on imported oil, are already experiencing the repercussions.
“I have noticed a significant reduction in discounting on olive oil both in supermarkets and online,” said Prerna Bhamra, a resident of Vasant Kunj in Delhi.
India relies heavily on imported olive oil, with the vast majority (at least 90 percent) originating from Spain and Italy, and the nation is confronting numerous challenges as a result.
“Not only have the prices at source doubled over the past year, but the Euro has also appreciated by 12 percent to 13 percent, and we are still paying a 40 percent to 45 percent import duty on this higher price,” said Rahul Upadhyay, president of Indian Olive Association.
In the year 2022, India brought in a total of 13,433 metric tonnes of both extra virgin and pomace olive oil. Due to the substantial increase in domestic prices, the industry association has formally asked the government to lower import duties. MRK Foods, a company engaged in importing and supplying olive oil to more than 600 upscale restaurants and five-star hotels, has observed a rising demand for pomace oil.
“We have reduced imports of extra virgin olive oil by 30 percent and almost doubled imports of pomace,” said Dhiraj Dama, managing director of the company.
While numerous upscale Italian restaurants continue to utilize their existing inventory, smaller eateries have opted for substitute options. Certain customers have already detected alterations in the flavor.
“I have been visiting a small Italian cafe for a long time and I recently noticed a change in taste,” said Kavita Gupta, a resident of Kalyani Nagar in Pune.